Ripple Soldiers Battle XRP Short Sellers
XRP is trading at about $2.25, following a 12 percent decline in value last week. Price action revealed the asset may initiate a bullish rally if it successfully exits such a move.
XRP is trading in a narrow range on the one-hour chart after a large sell-off, with price action settling close to short-term support at $2.2.
The fact that the remittance token has been trading below $3 for nearly a month suggests a correction phase is still in play. However, a reversal could occur and the market would rally toward important resistance levels if the SEC drops its lawsuit against XRP. According to on-chain data, whales fought short-term holders’ attempts to sell since the recent cryptocurrency market crash.
However, Market action indicates that there isn’t much buying pressure, and a drop in volume affirms market uncertainty.
There has been no test of the short-term resistance at $2.45 and the price has not reached higher highs. If the price breaks above $2.25 with high volume, it may move toward $2.2–$2.4, but if it breaks below $2, it might continue to decline to the $1.8 support line.
The Ripple-based token on the daily chart highlighted a pattern of lower highs and lower lows, which supports a long-term bearish structure. A support line drawn at $2.2 emerged as a critical level, while resistance at $3.5 is still a long way off.
XRP would need to break through resistance levels between $2.6 and $2.8 and set a higher low above $2.2 to recover. If bearish pressure persists, a drop below $2.1 could indicate lower price levels.
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